It appears yoga fanatics who like to stay active also don’t mind sitting down in front of a computer every once in a while.
An increase in e-commerce sales for Lululemon (NASDAQ:LULU) helped boost revenue 10% during the first quarter of 2015, according to financial results released by the yogawear-maker Tuesday (June 9).
The Vancouver-based company reported revenue climbed to $424 million compared with $385 million during the same quarter a year prior.
CEO Laurent Potdevin said in a statement the company came in ahead of revenue expectations as direct to consumer net revenue jumped 27% to $83.6 million.
"We drove positive trends in traffic, conversion, and brand engagement, along with a continued acceleration of our e-commerce business,” he said.
Profit increased 152%, growing from $19 million in the first quarter of 2014 to $48 million in this year’s first quarter.
But Stephen Ward, commercial director with retail analysts Conlumino, noted in an email to Business in Vancouver the 10% revenue growth is down somewhat from the 16% growth Lululemon had during the final quarter of 2014.
He said the 4% drop in comparable store sales at physical locations was “particularly significant” given increased competition from The Gap and Under Armour.
The Gap, he noted, is making a deeper push into active wear while Under Armour has been increasing its retail locations and has experienced significant growth the past year when it comes to products directed at women.
Ward said that while e-commerce “does deliver sales, these are, by our calculations, less profitable than those made through stores…Lululemon will need to work much harder if it is to keep in good shape in what is now a much more competitive market.”
